Tuesday, July 11, 2017

The dynamics behind bankers coin

The idea was to leverage the existing bank clearing system, a trusted network.

The bankers, a slim majority of them, agree on secure element, thus defininga handheld device that operates in their clearing system. And, the bankers declare, each device shall have one bankers coin for pre-paid clearing services.

Great, but the bankers take a first mover position in the ICO, they get the first batch of secure elements and test it among themselves before general release. Using the bankers coin, experimentality, to pay each other clearing costs, the banks reveal their collective ledger queues. We can see that the power of the collective clearing system, priceable, will make the coin very dominant.

All new users of the coin start with a bound variance on ledger fees, for a long time depending on how the banker quantize service prices among themselves. We also see the match between thumbprint and outstanding coin, the population standard. Get me four big bank CEOs to agree and this coin owns the world, it is central bank neutral and issued under a pure cash S&L.

Quantizing the clearing fees

The clearing function has expenses (electricity, compute and non zero transaction costs). Then the clearing function has trade book uncertainty, very small. Appropriate these units over 6 billion who use the clearing function four times a year. The banks cover 30% of the total cost.

We use the existing clearing process, generally considered congestion free and trusted.